Exhibit 99.1
Second Quarter 2012 Financial Statement Corrections
The following tables set forth the adjustments and restated amounts which correct the calculation error described in Item 4.02(a) of this Current Report on Form 8-K, with respect to (i) the Company’s unaudited condensed consolidated balance sheet as of June 30, 2012; (ii) the Company’s unaudited condensed consolidated statements of income for the three and six months ended June 30, 2012; (iii) the Company’s unaudited consolidated statements of other comprehensive income for the three and six months ended June 30, 2012; (iv) the Company’s unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2012; and (v) the Company’s unaudited share-based compensation expense for the three and six months ended June 30, 2012.
Condensed Consolidated Balance Sheet Items
Unaudited
| | June 30, 2012 | |
| | Previously reported | | Adjustments | | Restated | |
| | (in thousands) | |
Additional paid-in capital | | $ | 725,238 | | $ | 3,848 | | $ | 729,086 | |
Retained earnings | | (171,737 | ) | (3,848 | ) | (175,585 | ) |
Total shareholders’ equity | | 681,427 | | — | | 681,427 | |
| | | | | | | | | | |
Condensed Consolidated Statements of Income
Unaudited
| | Three Months Ended June 30, 2012 | |
| | Previously
reported | | Adjustments | | Restated | |
| | (in thousands, except per share data) | |
General and administrative | | $ | 12,592 | | $ | 3,848 | | $ | 16,440 | |
Total expenses | | 71,966 | | 3,848 | | 75,814 | |
Operating loss | | (11,666 | ) | (3,848 | ) | (15,514 | ) |
Loss from continuing operations before taxes and non-controlling interest | | (10,410 | ) | (3,848 | ) | (14,258 | ) |
Net loss attributable to Magnum Hunter Resources Corporation from continuing operations | | (7,457 | ) | (3,848 | ) | (11,305 | ) |
Net loss | | (7,457 | ) | (3,848 | ) | (11,305 | ) |
Net loss attributable to common shareholders | | (14,615 | ) | (3,848 | ) | (18,463 | ) |
Loss from continuing operations | | (0.10 | ) | (0.02 | ) | (0.12 | ) |
Loss per common share | | (0.10 | ) | (0.02 | ) | (0.12 | ) |
| | | | | | | | | | |
| | Six Months Ended June 30, 2012 | |
| | Previously
reported | | Adjustments | | Restated | |
| | (in thousands, except per share data) | |
General and administrative | | $ | 27,791 | | $ | 3,848 | | $ | 31,639 | |
Total expenses | | 140,711 | | 3,848 | | 144,559 | |
Operating loss | | (23,215 | ) | (3,848 | ) | (27,063 | ) |
Loss from continuing operations before taxes and non-controlling interest | | (28,383 | ) | (3,848 | ) | (32,231 | ) |
Net loss attributable to Magnum Hunter Resources Corporation from continuing operations | | (24,594 | ) | (3,848 | ) | (28,442 | ) |
Net loss | | (19,915 | ) | (3,848 | ) | (23,763 | ) |
Net loss attributable to common shareholders | | (31,667 | ) | (3,848 | ) | (35,515 | ) |
Loss from continuing operations | | (0.25 | ) | (0.03 | ) | (0.28 | ) |
Loss per common share | | (0.22 | ) | (0.03 | ) | (0.25 | ) |
| | | | | | | | | | |
Consolidated Statements of Other Comprehensive Income
Unaudited
| | Three Months Ended June 30, 2012 | |
| | Previously
reported | | Adjustments | | Restated | |
| | (in thousands) | | | | | |
Net loss | | (7,457 | ) | (3,848 | ) | (11,305 | ) |
Total comprehensive loss | | (11,765 | ) | (3,848 | ) | (15,613 | ) |
| | Six Months Ended June 30, 2012 | |
| | Previously
reported | | Adjustments | | Restated | |
| | (in thousands) | | | | | |
Net loss | | (19,915 | ) | (3,848 | ) | (23,763 | ) |
Total comprehensive loss | | (20,797 | ) | (3,848 | ) | (24,645 | ) |
Condensed Consolidated Statement of Cash Flows
Unaudited
| | Six Months Ended June 30, 2012 | |
| | Previously
reported | | Adjustments | | Restated | |
| | (in thousands) | | | | | |
Net loss | | (19,915 | ) | (3,848 | ) | (23,763 | ) |
Share based compensation | | 8,691 | | 3,848 | | 12,539 | |
Net cash provided by operating activities | | 48,665 | | — | | 48,665 | |
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Share-Based Compensation Expense
Unaudited
| | Three Months Ended June 30, 2012 | |
| | Previously
reported | | Adjustments | | Restated | |
| | (in millions) | | | | | |
Share-based compensation expense | | $ | 4.1 | | $ | 3.8 | | $ | 7.9 | |
| | | | | | | | | | |
| | Six Months Ended June 30, 2012 | |
| | Previously
reported | | Adjustments | | Restated | |
| | (in millions, except per share/unit data) | |
Share-based compensation expense | | $ | 8.7 | | $ | 3.8 | | $ | 12.5 | |
Total unrecognized compensation cost | | $ | 21.1 | | $ | (3.8 | ) | $ | 17.3 | |
Weighted average period to be expensed in years | | 2.38 | | (0.09 | ) | 2.29 | |
Fair value at the grant date per option | | $ | 4.26 | | $ | (0.47 | ) | $ | 3.79 | |
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